Credit on air tickets and tour

[Ganeshan Kalyani]

Dear Sir,

I would like to discuss that in general course of business the associate of the company travel abroad for business meeting, exhibition etc. The travel agent is doing the booking for air fare and plan for hotels and stay. The travel agent raises bill on the company with service charge and service tax. Whether the service tax on bill can be claimed as cenvat credit. Whether the same can be issued by way of Input Service Distribution (ISD). Kindly through some light in the discussion.

regards,

ganeshan

AI Summary

Exploring CENVAT credit eligibility for service tax on business travel expenses; Rule 7 of CENVAT Credit Rules, 2004. A discussion forum participant inquired about claiming service tax on air tickets and hotel bookings as CENVAT credit for company associates traveling abroad for business. One respondent suggested distributing the credit based on unit turnover through Input Service Distribution (ISD). Another advised reviewing Rule 7 of the CENVAT Credit Rules, 2004, to ensure proper distribution. A third respondent noted that CENVAT credit could be claimed if the travel expenses are linked to a taxable output service. The discussion centers on the eligibility and distribution of service tax credits in business travel expenses.